Well done for getting indexed - now with some tweaking you should be able to improve on those results. Check around this forum - tons of good advice here - also http://www.seobook.com/
- has some good free information - which will give you the basics.
The other thing I would recommend is make sure you are working on optimizing your site for the right keywords - e.g. don't try to win a battle, you will find hard to win, at least initially. What I mean is - if you are a local business, use keywords with local city names in them - i.e. Pizza restaurant Houston, not just Pizza restaurant.
Use the free Google keyword tool to research keywords - enable all columns so you can see monthly traffic and click cost, if you were paying for the clicks on Adwords (gives idea of competition for that keyword). Try to optimize for keywords which 1) are strictly relevant to your site, 2) have decent amounts of traffic, 3) are less competitive.
Adwords is a completely different issue, although you will probably start with the same keywords as you are using for SEO. Make sure you have read all of the free resources on Adwords before diving in - looks easier than it is - and it is easy to dump cash when first starting out. That said, this is the best way I know of getting large amounts of traffic to your site whilst you are working on your SEO.